Delhaize Group has announced the signing of an agreement with Bi-Lo Holdings to divest its Sweetbay, Harveys, and Reid's operations for US$265m in cash.
As part of the transaction, Bi-Lo Holdings will also acquire leases for ten prior Sweetbay locations, the group revealed, while Delhaize will retain Sweetbay's distribution centre.
In 2012, the 165 stores included in the transaction – consisting of 72 Sweetbay outlets, 72 Harveys outlets and 11 Reid's stores – generated revenues of approximately US$1.8bn.
'We would like to thank the associates of Sweetbay, Harveys, and Reid's for their ongoing commitment and accomplishments throughout the years.' said Delhaize Group CEO Pierre-Olivier Beckers. 'We believe this transaction represents a significant move towards simplifying our business and will allow for even greater focus at Delhaize America. The transaction will further increase the financial flexibility required to execute our strategic priorities.'
The transaction is expected to close in the fourth quarter of 2013 and is subject to regulatory approval as well as customary closing conditions and working capital adjustments.
